back to blog homepage

More Signs of the Bottom Forming

> 48% of all stocks traded are making new 52-week lows today – this is a sign that a bottom is being made.

> October is known as the Bear Killer – it has ended 11 past bear markets

> The second Tuesday in October has market the bottom in bear markets in 1962, 1966, 1974, and 1990

> The S&P 500 is currently at 1,018 – 18 points above the psychologically important 1,000 level

> India has cut its banking reserve requirements, flooding the Indian market with cash

> The defensive stocks are all off 7% or so today – there is no where to hide

> The VIX has risen even more, up over 60 a bit ago

> The % of stocks trading above their 40-day moving average is at 6%. There is only two previous times when the % was lower: 1987 stock crash and the 1990 S&L Crisis

> Bear markets end when there is excessive fear, lots of selling and lots of cash on hand – we have all three situations as there is $4 trillion that would normally be in equities that is sitting on the sidelines waiting to go into the market as soon as it sees a systemic catalyst – the huge liquidity infusion and the likely rate cuts will act as that catalyst

Hang in there…odds of a rate cut have increased significantly today – maybe we'll see that worldwide coordinated cut tomorrow and the markets can begin their (probably long) recovery.

Mark